IPR a hard sell in Malaysia

Comments from participants at a briefing yesterday on IP
protection, jointly organised by the US embassy and the Federation of Malaysian
Manufacturers (FMM), suggest that many remain unconvinced that Malaysia will reap
all the benefits outlined from an enhanced IP protection regime.
<P>&#147;Nobody
in Malaysia can deny the need to protect IP,&#148; said M Supperamaniam, former
ambassador for Malaysia to the World Trade Organisation (WTO), in his opening
remarks to the briefing held at FMM headquarters in Kuala Lumpur.</P><P>But there
remains the problem of &#147;balancing between strengthening IP protection regulations
and the socio-economic needs and public policy objectives&#148; of developing
countries such as Malaysia, said Supperamaniam, who is also FMM advisor on the
WTO and FTAs.</P><P>The fear of increasing cost of medicines, for example, due
to longer patent terms and increased protection of clinical research data have
yet to be convincingly put to rest by advocates of enhanced IP protection, he
noted.</P><P>Citing the suspension of the US-Thailand FTA negotiations last year,
Supperamaniam said among the reasons the talks stalled was the inability of the
two governments to agree on the IP protection provisions of the FTA, particularly
in relation to HIV/Aids medicine.</P><P>Reports that stronger IP protection regulations
have led to the growth of the new and generic medicines industry in some countries,
for example, are contradicted by other reports suggesting declining public health
standards.</P><P>He further said that biotechnology company Hovid Bhd had recently
announced plans to relocate to India out of fears that it would lose out to US
pharmaceutical companies following the implementation of the FTA&#146;s patent
laws restricting generic medicines production.</P><P>Attorney-Advisor at the US
Patent and Trademark Office (USPTO) Karen M Hauda on the role of IP protection
in promoting new and low-cost drugs was followed by more questions about the results
of stronger IP rights.</P><P>Superamaniam continued his line of questioning by
recounting WTO discussions where developing countries had challenged the aims
of greater IP protection.</P><P>Much-needed funds, he said, often go towards non-essential
clinical research and pharmaceutical development instead of combatting critical
diseases plaguing the developing nations such as in Africa.</P><P><B>Claims rebutted</B></P><P>Another
USPTO official, senior counsel Peter N Fowler, cited a 1994 World Bank (WB) report
on IP protection, foreign direct investment, and technology transfer to press
the case for Malaysia to strengthen IP protection in order to secure foreign investment.</P><P>&#147;When
corporations were asked if they would invest in R&amp;D (research and development),
more than 80 percent stated the strength or weakness of the IP regime in a country
would have a strong effect on whether to invest there or not,&#148; said Fowler.</P><P>&#147;A
clear and enhanced legal framework and regulatory regime aimed at the future,
combined with a strong and proactive enforcement regime, will produce results,
make Malaysia an attractive investment destination, and set Malaysia apart from
others in the region.&#148;</P><P>Fowler was subsequently queried, however, by
a civil society representative who pointed out that the 1994 WB report had been
rebutted by subsequent studies.</P><P>Companies, according to one report cited
by the participant, blamed the lack of laws preventing former employees of companies
from revealing trade secrets as among their foremost concerns, not IP protection
regulations.</P><P>The participant also recounted work by researchers from a local
university that suggested companies conducting research and development in Malaysia
were relocating to other countries, but not because of Malaysia&#146;s allegedly
low standards of IP protection.</P><P>The companies were moving because Malaysia&#146;s
population was too small a market size compared to India, for example, and because
of the relative lack of skilled human resources, she said.</P><P>The issue, said
an economist after the briefing, boils down to the question why Malaysia, which
had already agreed to the WTO&#146;s Trade-Related Aspects of Intellectual Property
Rights provisions, would want to go beyond them and implement even higher standards
of IP protection.</P><P>Noting that 98 percent of patents in Malaysia already
belong to foreign corporations, there will not be many gains in higher IP protection
regulations, he said.</P><P>&#147;Even after this briefing, the only conclusion
one can reach is that Malaysia will not benefit to any significant degree from
higher IP rights regulations – not as much as US companies, at least,&#148; said
the economist who declined to be identified.</P><P>The Malaysian and US governments
have been conducting negotiations on the signing of the FTA, but are unlikely
to meet the July deadline.</P><P><I>Source: http://www.malaysiakini.com/news/62522</I>